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Next Home

Statewide, Indiana

Last verified
See what you qualify forOfficial program site →
Assistance

3.5%

Of the purchase price, as the program sets it

Income limit

$156,520

The household income limit the program publishes

Price cap

$594,770

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Next Home?

Next Home is a deferred second loan for homebuyers in Statewide, Indiana.

  • Next Home is IHCDA's repeat-buyer-friendly DPA tier, providing up to 3.5% of the purchase price as a 0% interest non-forgivable second mortgage paired with a 30-year fixed IHCDA first mortgage (FHA or Conventional). NO first-time-homebuyer requirement — uniquely flexible vs. First Step. 660 FICO Conventional / 640 FICO FHA. County-specific income and acquisition limits.
  • Next Home provides up to 3.5% of the purchase price as down payment and closing-cost assistance, structured as a 0% interest, non-forgivable second mortgage with NO monthly payments. The principal balance is deferred and due only on sale, refinance, payoff, or transfer of title within the 2- or 3-year affordability period (depending on first-mortgage product).
  • after the affordability period, no further repayment is owed if the borrower remains in the home. Paired with an IHCDA 30-year fixed-rate FHA or Conventional first mortgage. NO first-time-homebuyer requirement — available to repeat buyers as well.
  • Funding comes from State, HFA, and Bond.

How much assistance does it provide?

Next Home provides assistance worth 3.5% of the purchase price, as set by the program.

  • The program asks buyers to contribute $250 IHCDA reservation/program fee; lender may also require minimum borrower contribution per first-mortgage product.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Next Home is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Deferred and balance due on sale, refinance, payoff, or transfer of title within the affordability period.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Next Home is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 660 minimum FICO for Conventional; 640 minimum FICO for FHA
  • Residency: Property must be located in Indiana and used as borrower's primary residence
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays
  • NO first-time-homebuyer requirement. Minimum 660 FICO for conventional, 640 for FHA. Max 45% DTI (50% with FHA total scorecard accept and 680 FICO). Property must be primary residence. Household income at or below IHCDA published county limits (top tier ~$156,520). Purchase price at or below IHCDA county-specific acquisition limit. $250 reservation fee. Standard IHCDA underwriting overlays apply.

The program excludes

  • Manufactured homes
  • Purchases above the $594,770 price cap
  • Households above $156,520

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Next Home limits household income to $156,520.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Next Home caps the purchase price at $594,770.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (per first-mortgage overlays).
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Next Home serves buyers purchasing in Statewide, Indiana.

  • The program targets specific areas: IHCDA designates federally qualified target areas where income/acquisition limits are relaxed.

How do you apply?

Applications for Next Home go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Contact the administering agency to reserve funds

    Funds are reserved through IHCDA-approved lender reserves funds via IHCDA Online Lender Portal (OLP) at time of loan reservation; subject to bond/program funding availability and $250 reservation fee., and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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